EMI Amount:

Advance EMI is mostly offered by banks for car loans, wherein you make an EMI payment in advance, and banks will generally deduct this amount from the loan amount they hand over to you. The principal loan amount will get reduced by the amount of advance EMI paid.

EMI in Arrears

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Arrears EMI scheme does not require the borrower to make any advance payment to the bank or the dealer. The entire loan amount sans the one time charge and fees is disbursed by the bank or lender.